Comparing CNH Global (CNH) and Lindsay (LNN)
CNH Global (NYSE: CNH) and Lindsay (NYSE:LNN) are both industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.
Lindsay pays an annual dividend of $1.20 per share and has a dividend yield of 1.3%. CNH Global does not pay a dividend. Lindsay pays out 55.6% of its earnings in the form of a dividend. Lindsay has raised its dividend for 14 consecutive years.
Earnings and Valuation
This table compares CNH Global and Lindsay’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Lindsay||$517.98 million||1.96||$23.17 million||$2.16||44.00|
Lindsay has higher revenue and earnings than CNH Global. CNH Global is trading at a lower price-to-earnings ratio than Lindsay, indicating that it is currently the more affordable of the two stocks.
This table compares CNH Global and Lindsay’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
94.4% of Lindsay shares are owned by institutional investors. 3.1% of Lindsay shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This is a breakdown of current recommendations and price targets for CNH Global and Lindsay, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Lindsay has a consensus price target of $92.33, suggesting a potential downside of 2.86%.
Lindsay beats CNH Global on 9 of the 11 factors compared between the two stocks.
About CNH Global
CNH Global N.V. (CNH) is a global, full-line company in both the agricultural and construction equipment industries. The Company organizes its operations into three business segments: agricultural equipment, construction equipment and financial services. The Company markets its products globally through its two brand families, Case and New Holland. Case IH (along with Steyr in Europe) and New Holland make up its agricultural brand family. Case and New Holland Construction (along with Kobelco in North America) make up its construction equipment brand family. During the year ended December 31, 2012, the Company was manufacturing its products in 37 facilities globally and distributing its products in approximately 170 countries through a network of approximately 11,500 dealers and distributors.
Lindsay Corporation, along with its subsidiaries, provides a range of water management and road infrastructure products and services. The Company operates through two segments: Irrigation Segment and Infrastructure Segment. The Irrigation Segment includes the manufacture and marketing of center pivot, lateral move, and hose reel irrigation systems, which are used primarily in the agricultural industry. The Infrastructure Segment includes the manufacture and marketing of moveable barriers, specialty barriers, crash cushions and end terminals, road marking and road safety equipment, large diameter steel tubing, and railroad signals and structures. It also manufactures and markets hose reel travelers under the Perrot and Greenfield brands in Europe and South Africa. It produces or markets chemical injection systems, variable rate irrigation systems, flow meters, weather stations, soil moisture sensors, and remote monitoring and control systems, which it sells under its GrowSmart brand.
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